The third quarter of the calendar year is now in the books and companies will soon begin to report the latest quarter of earnings. As many well know, September is one of the big 4 months of the year that tends to tally a large sum of dividend receipts and there is no exception with my experience. See below for the monthly along with the YoY variance allocation between rate and volume - netting an increase of 34.6% increase in dividends.
As you can see from the summary above, there were some "heavy lifters" that contributed to the nice increase of 10.5% in the aggregate YoY dividend rate. Those who hold railroads, namely UNP and NSC, know that both there capital appreciation and their corresponding dividend rates have been climbing at quite a pace the last several years - both of these respective railroads have increased their dividend rate by over 30% in the past year! Two other big contributors to the rate increase are GLW and PSX with 16% and 14%, respectively.
The addition of new capital and reinvestment of dividends received in the past year contributed to most of the favorable variance YoY, amounting to a 24.1% increase. The largest impact came from a reallocation of mutual funds holdings I made shortly after the first of the year (moving funds from an international mutual fund to the Vanguard Equity Income Fund) and next largest contributor on the volume side of the equation is my relatively new position in KHC - a position which I will continue to add to incrementally at current valuations.
With 9 months of dividend income in the rear view mirror, the expectation of hitting $7,200 (a 30%+ YoY net increase) in aggregate dividend income for 2018 looks fairly certain to materialize and I just may get a bit beyond that number depending on how much additional capital I put to work before the end of the year. Stay tuned!
As you can see from the summary above, there were some "heavy lifters" that contributed to the nice increase of 10.5% in the aggregate YoY dividend rate. Those who hold railroads, namely UNP and NSC, know that both there capital appreciation and their corresponding dividend rates have been climbing at quite a pace the last several years - both of these respective railroads have increased their dividend rate by over 30% in the past year! Two other big contributors to the rate increase are GLW and PSX with 16% and 14%, respectively.
The addition of new capital and reinvestment of dividends received in the past year contributed to most of the favorable variance YoY, amounting to a 24.1% increase. The largest impact came from a reallocation of mutual funds holdings I made shortly after the first of the year (moving funds from an international mutual fund to the Vanguard Equity Income Fund) and next largest contributor on the volume side of the equation is my relatively new position in KHC - a position which I will continue to add to incrementally at current valuations.
With 9 months of dividend income in the rear view mirror, the expectation of hitting $7,200 (a 30%+ YoY net increase) in aggregate dividend income for 2018 looks fairly certain to materialize and I just may get a bit beyond that number depending on how much additional capital I put to work before the end of the year. Stay tuned!
Dang, over $1100 this month and your yearly total is even more impressive. We share two companies albeit in different share count. Keep inspiring!
ReplyDeleteThanks Mr. Robot! It is pretty neat to look back at the growth in dividend income in recent years and yet still hard to imagine the income that will materialize over the coming decades as a result of the compounding growth of reinvesting the dividends combined with new capital.
DeleteDangggg. That income vortex is firing on all cylanders. 27 different forms of income thats pretty good. keep it up
ReplyDeleteDividendsandhobbies, thanks for stopping by. It is a great experience to see the sum of dividends climb to higher levels YoY. I believe John Rockefeller has quote about dividends and the pleasure he'd experience when he received the checks throughout the year. May that pleasure be experienced by all who seek it :)
DeleteWoah, woah woah PIV. This month has been incredible. Look at the growth you have experienced in one year. Between that new fat divvy from KHC and VEIPX and the double-digit percent dividend increases, it is all incredible. Keep up the great work and keep on chugging along!
ReplyDeleteBert
Thanks Bert, I admit that September was one of the most surprising months YTD. I knew it would be one of the months with the most income, however, the YoY rate increases really stand out this month and will no doubt lay the foundation for even greater income next year as the dividends deliver on the compound effect.
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